Reliance Industries (RIL) is believed to have raised its offer for bankrupt petrochemical firm LyondellBasell Industries by about $1 billion to $14.5 billion.
RIL had in November made a preliminary, non-binding offer for fuels- and chemicals-maker LyondellBasell and revised it to about $13.5 billion last month.
On the heels of the bankrupt company's unit Lyondell Chemical Co reaching a settlement with its unsecured creditors and lenders, RIL is believed to have raised the offer to $14.5 billion, sources in know of the development said.
The Indian firm has now offered Lyondell creditors the option of cash or equity in the company.
"The (RIL) management was till Saturday (February 20) mulling on revising offer for Lyondell. They were debating whether to say in contention or drop out. To my understanding, they may have decided to stay on," a source said.
A company spokesperson declined to comment.
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A deal between RIL and Lyondell would create a global energy and chemicals giant, with annual revenues estimated at near $80 billion. The world's third-largest independent chemical company would give RIL petrochemical plants two oil refineries and access to the US fuel market.
RIL shares fell by 0.54 per cent to close at Rs 978.90 on the Bombay Stock Exchange.
Houston-based Lyondell Chemical had in December filed a plan to reorganise while evaluating the offer from RIL, pitting the Mukesh Ambani-firm against lenders.
Lyondell has said it plans to reorganise by repaying its $8 billion bankruptcy loan in full and giving an equity stake in the new company to lenders, including sponsors of a $2.8 billion rights offering.
In the settlement reached with unsecured creditors last week, Lyondell Chemical Co agreed to pay $450 million, a move that may help the company exit Chapter 11 bankruptcy.